Germany last night declared that Britain would be forced to scrap the pound and join the euro – as David Cameron returned home empty-handed from crisis talks in Berlin.

In a highly-provocative intervention, German finance minister Wolfgang Schauble suggested the UK’s struggling economy meant the pound was doomed, and urged the Prime Minister to back Europe’s ailing single currency.

Mr Schauble said the euro would emerge stronger from the current crisis – leaving Britain on the sidelines unless it signed up. He said Britain would be forced to join ‘faster than some people on the British island think’ – despite a pledge by Mr Cameron never to do so.

But Jean-Claude Juncker, head of the powerful Euro Group of eurozone finance ministers, said Britain was in no position to comment on the crisis as its deficit was twice the European average.

Mr Schauble’s comments came as Mr Cameron arrived to a hostile reception in Berlin for talks on the eurozone crisis with German Chancellor Angela Merkel. Senior members of Mrs Merkel’s ruling coalition voiced their irritation at London’s ‘lecturing’ over the crisis.

Leading German magazine Der Spiegel ran a prominent feature describing Britain as the ‘dis- eased empire’.

Berlin has drawn up secret plans designed to bypass the threat of a British referendum on treaty reforms.

A leaked German memo stated: ‘Limiting the effect of the treaty changes to the eurozone states would make ratification easier, which would nevertheless be required by all EU member states (thereby less referenda could be necessary, which could also affect the UK).’ The memo will add to fears that Germany wants to use the eurozone crisis to create a European ‘super state’ with its own tax and spend policies.

Mrs Merkel is determined to establish a new European Monetary Fund with powers to intervene directly in the economies of member states.